The Specialist Bank for the Public Sector30-06-20061

Outlook for the banking system after

joining the EU: new actors on the market Romanian Banking Forum, Bucharest, 27 Nov. 2006

Pascal BeckerMember of the Executive Board

The Specialist Bank for the Public Sector30-06-20062

DEXIA KOMMUNALKREDIT BANK

I) Short presentation of Dexia Kommunalkredit Bank

II) Joining the EU: new financings available in Romania thanks to a more stable and predictable environment

The Specialist Bank for the Public Sector30-06-20063

DEXIA KOMMUNALKREDIT BANK

Specialist bank for the public sector in Central and Eastern Europe

— Long-term financing solutions to public authorities and public enterprises

— Financing solutions adapted to local environment and needs of the customers in the

CEE (e. g. Maastricht-neutral financing solutions)

Joint venture between Dexia Crédit Local and Kommunalkredit Austria

— established in March 2005 in order to concentrate and strengthen the activities of

Dexia Credit Local and Kommunalkredit in Central and Eastern Europe

— Dexia is the world market leader in financing local authorities and public infrastructure

projects

— Kommunalkredit is Austria's number 1 in public finance

The Specialist Bank for the Public Sector30-06-20064

Our Market

Domicile of Dexia Kommunalkredit Bank

Countries in which Dexia-Kom has an entity

Countries serviced by Dexia-Kom from Vienna

15 countries with 136 mln. inhabitants

The Specialist Bank for the Public Sector30-06-20065

The network in CEE

78,98% 100% 100%

Dexia banka Slovensko a.s.,

Zilina (SK)

Dexia Kommunalkredit

Bank Polska S.A., Warsaw (PL)

Dexia Kommunalkredit Bulgaria EOOD,

Sofia (BG)

Dexia Kommunalkredit Romania S.R.L.,Bucharest (RO)

Dexia Kommunalkredit Czech Republica.s., Prague (CZ)

%Kommunalkredit Austria AG49.16

Dexia Crédit Local50.84

100% 100%

Dexia Kommunalkredit

Hungary Kft.,Budapest (HU)

100%

The Specialist Bank for the Public Sector30-06-20066

Shareholders

Kommunalkredit Austria(30-06-2006)

Total assets: EUR 23.3 bln.

Return on equity: 17.4%

Staff: 289

Dexia Group( 30-06-2006)

Total assets: EUR 514 bln.

Return on equity: 24.3 %

Staff: 25 000Kommunalkredit

49.16%

Dexia Crédit Local

50.84%

Long-term ratings:Fitch Ratings

AADexia Kommunalkredit BankMoody's

Aa2

Dexia AA+Aa2Dexia Municipal Agency AAAAaa

AA-Kommunalkredit Aa3Kommunalkredit Covered Bond Aaa

The Specialist Bank for the Public Sector30-06-20067

FinancingsThe business fields

Public Finance CEE

Energy

Environment, Water,Waste management

HealthSocial

housing

Education Culture

Infrastructure

The Specialist Bank for the Public Sector30-06-20068

Dexia Kommunalkredit BankKey Figures

31-12-2004[EUR mln.]

31-12-2005[EUR mln.]

31-10-2006[EUR mln.]

Change /Share in %

Loans and advances to customers 470.5 728.9 1,115.4 + 53%

Financial investments 3.2 2,529.5 4,249.2 + 58%

Total assets 986.7 3,976.3 6,365.1 + 60%

Pre-tax profit 4.9 7.5 14.1 + 88%

After-tax profit 3.1 4.3 9.9 + 130%

Return on equity before tax 11.4% 8.4% 13.3%

Return on equity after tax 7.0% 5.5% 10.0%

Cost-income ratio 77.1% 78.5% 65.0%

Tier 1 ratio 12.2% 12.2% 10.3%

Total capital ratio 21.1% 21.1% 16.7%

The Specialist Bank for the Public Sector30-06-20069

Dexia Kommunalkredit BankDevelopment between 01-03-2005 and 31-10-2006

Since inception, we have invested more than EUR 5 billion in the Public Sector in Central and Eastern Europe

(and a bit more than EUR 500 million in Romania).

Already a strong player in CEE

* preliminary figures

The Specialist Bank for the Public Sector30-06-200610

DEXIA KOMMUNALKREDIT BANK

I) Short presentation of Dexia Kommunalkredit Bank

II) Joining the EU: new financings available in Romania thanks to a more stable and predictable environment

The Specialist Bank for the Public Sector30-06-200611

and to finance long term, the bank requires :

- Stability of the legal and administrative system, - Transparency of the accounts,- Revenue predictability.

Sub-sovereign and infrastructure projects require long term financing:

The Specialist Bank for the Public Sector30-06-200612

=> EU integration brings you lots of constraints but

also provides comfort to the Financial Institutions as

regards to the stability / predictability of the

environment.

=> EU integration entails an overall rating upgrade

allowing CEE countries to benefit from financial

innovations already implemented in Western Europe.

The Specialist Bank for the Public Sector30-06-200613

Improving Creditworthiness of Local Authorities in CEEMoody's sovereign ratings long term, foreign currency(before November 12, 2002/current)

Baa2/A2

Baa1/A1

Baa1/A2

Ba1/A2

Aaa/Aaa

A3/Aa2

Baa1/A1

Baa3/A1

Baa1/A1**

Baa3/Baa3

B2/Baa3

B3/Baa3

Estonia 3

Latvia 3

Lithuania 5

Poland 2

Slovakia 5

Slovenia 4

Czech Republic 3

Hungary 3

Bulgaria 5

Croatia 0

Romania 6

Upgradings since 12-11-2002 (in notches)

*under review for possible upgrade

**negative outlook

The Specialist Bank for the Public Sector30-06-200614

Evolution in Central and Eastern Europe:

towards a more efficient Financial Market

- Evolution of the loan market => long term, restructuring,…

- Access to capital markets products

- Credit enhancement

- Mobilisation of long term ressources on domestic financial

markets

- Need for Maastricht- deficit neutral solutions

- Public-Private-Partnerships (PPPs)

The Specialist Bank for the Public Sector30-06-200615

ex : Development of PPPs

_Poland

Legal framework under review Roads, Water

_Hungary

PPP Inter Ministerial Committee and PPP Department (Ministry of Transport) New Procurement Act, 2004 Roads, Prisons, Students Accommodation

_Czech Republic

PPP Taskforce, 2004 Concession Act under preparation Program of pilotsprojects under preparation Roads, Water,Army accommodation

KEY

_Croatia Water Transport

_Slovakia

Water

_Country Legal framework Sectors where projectshave already been closed or are under consideration

_Romania

Roads

The Specialist Bank for the Public Sector30-06-200616

Conclusion

Competitive funding due to good ratings of owners

Dexia Kommunalkredit Bank

Strong expertise in Central and Eastern Europe

Dexia-Kom : your partner in CEE

Special value for customers through specialist know-how

Innovative financing solutions adapted to local requirements

Focused investments in CEE due to great market potential

The Specialist Bank for the Public Sector30-06-200617

THANK YOU VERY MUCH FOR YOUR KIND ATTENTION

Dexia Kommunalkredit Bank

The Specialist Bank for the Public Sector30-06-200618

Phone

Fax

Member of the Executive Board

Leopold Fischer

Chief Executive OfficerReinhard Platzer

Dexia Kommunalkredit Bank, Tuerkenstraße 9, 1092 Vienna

Member of the Executive Board

Pascal Becker

+43-1-31 6 31-

500

520

100

300

Member of the Executive Board

Claudia Schmied 200

The Specialist Bank for the Public Sector30-06-200619

Contact List

Roxana LazarCEODexia Kommunalkredit Romania

021 20 19 400

Marian Sirbu Commercial Director 021 20 19 402

Matei CreiveanuSenior Relationship Manager

021 20 19 403

Cosmin Maican Financial Analyst 021 20 19 400

Cosmina Avram Office Manager 021 20 19 400

www.dexia-kom.roBucuresti, Calea Dorobanti nr. 42